New Company to Predict Social Buzz

In an article for AdAge.com, author Mallory Russell writes of Horizon Media investing $1 million of seed money in a tech company that specializes in predicting social media buzz before it starts. (Adage.com)

The company is called Blab, and their employees are full of experience in agencies and technology.  They track what is going on in the social media in a specific interest group, like many other new social companies.   However, the major difference is this ability they claim to have of predicting what these interest groups are going to talk about.  This data is then provided to marketers to give them a head start.

Blab uses machine learning to focus on conversations on social media in order to target interests rather than demographics.  The idea being that with advance knowledge of what is about to become social media buzz, marketers will have more time to react, allowing them to be ahead in the game, rather than catching up.

Horizon’s Chief Digital Officer, Donnie Williams, stated in an interview with Russell, that Blab would provide “data that allows us to anticipate hot topics upon which we can generate brand momentum through advertising.” 

An interesting point made by Russell: Horizon does not have a history of investing in startup companies like Blab – which has 10 employees in Seattle, and is doing some tests with their current list of 12 clients.  Also, Blab, thus far, has been self-funded.  Randy Browning, Blab’s co-founder and CEO, stated, “We are building an engine vs. a platform….  We wanted to be able to control the development of the engine as much as possible, so we wanted to find the right investors.”

This will be very interesting to watch – to see if this technology of Blab’s is really that good.  Sounds a bit creepy, if you ask me; a computer is going to know what I am going to talk about with my friend before I talk about it.  Hmm.  Creepy indeed! 

UK's Channel 4 to Become More Social-Like

In an AdAge.com article, Emma Hall writes about a new television channel being started by the U.K.’s Channel 4, which will dedicate its programming to shows that generate the “most buzz” on social networks, such as Facebook and Twitter.

Each of these programs will include the positive and negative comments of viewers.  According to Steve Parker of The Social Practice, “It’s an interesting idea and starts with a good insight by tapping into behavior that is already happening.  With social-media analysis tools, you can look at sentiment and volume and build your schedule for the next day.”

Hall mentions that in the UK in 2011, more than 90% of all television programs were still being watched live, so the impact of digital video recorders and video on demand were still rather limited.  This fact will be a benefit, then, for this new network, as many viewers like having choices, but ultimately, they want their choices organized for them.

Jim Dowling, a partner with a company called Cake, which manages social media for Sony, Ikea and others, has said, “The opinion people trust the most is that of their friends, not TV critics….”

This is exactly the point that many proponents of leveraging social media as a tool for advertising have been trying to make.  And it is true: that old adage that word of mouth is the best advertising rings true now more than ever.  It is interesting to see a broadcaster is actually listening to its viewers and adjusting their programming accordingly, but almost in real time and not through the filter of ad dollars causing changes in programming.  So, as social media influences TV viewing habits, we will see how well this new channel performs with this unique approach to scheduling.  It will also be fascinating to watch and see how many other channels follow this format – particularly in the U.S., especially since a few months back, YouTube had announced it was going to become more “TV-like.”  Very interesting for sure.

Lessons Learned for a Business Plan

Dr. William A. Cohen has been a real inspiration to me in regards to my business plan.  I have been particularly impressed with his advice to focus on the executive summary; he suggested keeping it very brief, but specific, because investors want a quick read that really “hits them.” (Videojug.com)

Dr. Cohen’s other advice is to pay attention to the table of contents.  This is something I will need to address in my plan and make some adjustments.  As he explains it, potential investors want to see exactly where the data is located, so they can quickly turn to it and see what they feel is important.  The table of contents is what directs them to that information, quickly and concisely, without superfluous data. 

Growthink founders, Dave Lavinsky and Jay Turo, also impressed me with their list of key attributes to a successful plan, particularly the notion of using reverse engineering to understand how to best establish action plans.  Also, the idea of “communicating ‘brilliantly’” is something I am striving to incorporate into my plan, focusing on my audience and speaking appropriately to them in this document. (Growthink.com)

These suggestions have given me great guidance in developing my plan, and have provided great inspiration in making changes to my plan.  These have also focused my attention on the most important sections of my plan.  The executive summary is my most important piece, as it expresses the mission of the business and the who, what, where and why.  The financial data is also very important, as it offers a very good picture of how things will be setup and what can be expected from the company.  It also shows the plan, financially, and the potential for the future in regards to the earning potential. 

By focusing on these sections, and adapting what I’ve learned from the experts, I believe my business plan will benefit greatly from what I’ve learned from others and from my research.

Expert Opinions on Business Plans

One expert on business plans is a company called Growthink, which specializes in the building of successful business plans.  The founders of Growthink are Dave Lavinsky and Jay Turo. 

Dave has lectured at many universities over the years and has written many articles on the development of effective business plans.  He is a successful entrepreneur, having started many businesses over the years, and has sat on the board of the Los Angeles Regional Technology Alliance.  He has an MBA from UCLA and a BA from the University of Virginia.  He resides with his wife and two children in New York.

Jay has helped lead Growthink into one of the top companies in the country in the areas of strategic and financial advising for entrepreneurs.  He has worked with a large number of new companies, and has been an active investor – as well as a writer and speaker – in entrepreneurial endeavors.  Jay also earned his MBA at UCLA’s Anderson School of Management, and his BA was earned at Stanford University. He is married, with two children, and lives in Los Angeles.

On a Growthink video, Dave explains about their five key attributes of a successful business plan:

• ·      The right value proposition – offering customers what they truly want
• ·      The right marketing and sales strategy – well-thought out/comprehensive plans
• ·      The right business model – think through all possibilities; this model is more important than the industry
• ·      Using reverse engineering to develop action plans – look ahead 5 years, then work backwards from there
• ·      Communicating “brilliantly” – business plans are marketing documents; think about who you are marketing to (lenders, employees, partners/distributors, management)

(Growthink.com)

Dr. William A. Cohen is an author and founder of Institute of Leader Arts, and has penned more than 52 books and provided guidance for over a thousand businesses and marketing plans.  He is a former Major General, graduated from West Point and flew 174 combat missions in Vietnam, and earned numerous military awards.  Dr. Cohen has a Ph.D. in business management from the Peter F. Drucker School of Management at Claremont Graduate University.  Dr. Cohen also has his own website, www.stuffofheroes.com.

On Videojug.com, Dr. Cohen offers his advice on what a business plan is, and what the most important parts of such a plan are.  He references the importance of a plan when he referred to a statement one often hears, “Until you have it in writing, you don’t have it.”  (Videojug.com)

Dr. Cohen says the most important parts of a business plan are the executive summary and the table of contents.  He explains that the executive summary is very short, but it is so important because when you are looking for money, all investors will read that first – the summation of what you are going to do.  This is very practical matter for investors who may be reviewing hundreds of business plans each year; they want a brief overview – and if it “hits them” it will go in one pile, otherwise it goes in another pile and is rejected. 

The table of contents is important, because it provides the potential investors with a direct guide to find the information they want to read.  Dr. Cohen clarifies that if an investor, for example, has a background or expertise in finances, he will want to focus in on the financial segment of your business plan and not have to search for that data. 

According to Dr. Cohen, the key to a successful business plan is to “Adopt a structure that you’re comfortable with.”  He comments that he feels a business plan is your story, and it should be fun, and if it isn’t, there is something wrong with it.

http://www.growthink.com/businessplan

http://www.videojug.com/interview/business-plans

Congrats Doesn’t Equal Ad

Michael Jordan is in the news again – this time for court action of the legal nature, as he has file suit against a Chicago grocery store. 

Authors Tammy Brandt and Brian Socolow, of AdAge.com, explain that it was in 2009 that Sports Illustrated produced a commemorative edition of its publication, in which local Chicago businesses, among others, publicly congratulated Jordan on his election to the Basketball Hall of Fame. 

The “ad” from Jewel grocery store was a full-page, offering praise from “a fellow Chicagoan,” yet the judge in the case recently upheld their claim that it was not an actual advertisement; so congrats doesn’t equal an ad.

Jordan had argued that the congrats ad was an infringement on his business interests, as well as on his trademark, and sought to exploit Jordan for the store’s commercial gain – all without his permission.

With this ruling, it means that advertisers actually have some protection from the First Amendment regarding lawsuits filed by celebrities.  In this case, Jordan argued that the store, with its logo and slogan right there on the full-page, were intended to help its image, increase its value and ultimately serve as a promotion for the stores.

The judge explained that the presence of the logo and slogan were used to identify the congratulator and to personalize the wishes as being from a fellow Chicago entity.  He further explained that the congrats ad did not actually propose or invite a commercial transaction – which is what an advertisement normally does, and which helps distinguish “commercial speech.”

To further understand this case, we must note that the Jewel did not approach Sports Illustrated, they did not buy the advertising space, nor do they own the magazine in which the ad was published.  Now, if the ad had appeared in the store’s local circular or on its website or even its page on Facebook, it would have been a different story.

Ultimately, the case is not completely settled: there is still room for appeal.  However, it does mean that, while congrats doesn’t equal an ad, many other forms of content does – so the advertiser, or congratulator, must be very careful in choosing their messages, especially when tied to a well-known individual.